Investigation reveals fake employee involved in Rs 94 crore scam at KMVSTDCL

Following an investigation into the Rs 94 crore diversion from Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Limited (KMVSTDCL), it was discovered that a key co-conspirator, J G Padmanabha, the company's former managing director, had fabricated a fake job posting for a junior accountant, calling himself Shivakumar.

This fake Shivakumar has been identified by SIT investigators looking into the scam as none other than Visakhapatnam resident Sai Teja Devarapalli, who was taken into custody during the final week of June.

Police claim that the gang made up an employee ID card in Teja's name and set him up as the junior accounts officer at KMVSTDCL. On March 4, they subsequently sent Union Bank of India a request letter authorizing him for banking activities and document collecting. According to the letter, Shivakumar has been given permission "to supervise all activities related to our account at Union Bank of India, Bengaluru, MG Road Branch." On behalf of KMVSTDCL, he is authorized to pick up cheque books, fixed deposit receipts, overdraft papers, and any other paperwork pertaining to accounts.


The letter further said that Padmanabha had approved the directive and that the authorization was still in effect until further notice. The group sent the bank another letter that same day asking for an expedited cheque book. On March 4th itself, Shivakumar picked up the checkbook with 20 leaves in it.

Shivakumar was not a junior accounts officer at the company, according to the SIT investigation. As a result, after questioning further suspects, the police were able to identify the enigmatic individual as Sai Teja and took him into custody.

He is accused of transferring Rs 94 crore to the accounts of First Finance Credit Co-Operative Society Ltd., located in Hyderabad, with the assistance of bank employees. Police confiscated CCTV evidence that demonstrates his many dates and times inside the bank.

[With TOI inputs]